Senate confirms Kevin Warsh as Fed chair

"We look forward to continued engagement on policies affecting the banking and housing finance systems and will continue advocating for a more balanced and risk-aligned approach to capital standards affecting mortgage lending and commercial real estate finance, Broeksmit said."

"This includes our recommendations on the Basel III re-proposal, which will include reducing the risk weight on mortgage servicing assets to 100% and eliminating their cap included in Tier 1 capital, reducing the risk weight to 50% on warehouse lending lines, and better calibrating capital requirements for commercial and multifamily real estate lending and community investment activities."

"In Powell's final meeting as Fed chair two weeks ago, the Federal Open Market Committee (FOMC) held its benchmark interest rate steady at a target range of 3.5% to 3.75%, marking its third consecutive pause. But there were some dissenting opinions expressed."

"While eight officials voted for the pause, Stephen I. Miran preferred to lower the target range by 25 basis points. Additionally, three officials backed the decision to hold rates but objected to recent language about an easing bias that suggested the Fed is moving closer to a rate cut rather than a hike."

Bob Broeksmit congratulated Warsh and urged continued engagement between the central bank and housing industry stakeholders. He called for a more balanced, risk-aligned approach to capital standards affecting mortgage lending and commercial real estate finance. He cited recommendations for the Basel III re-proposal, including reducing the risk weight on mortgage servicing assets to 100% and eliminating their cap in Tier 1 capital. He also recommended reducing the risk weight to 50% on warehouse lending lines. He further called for better calibration of capital requirements for commercial and multifamily real estate lending and community investment activities. Separately, the FOMC held its benchmark rate steady at 3.5% to 3.75% with dissenting views on lowering rates and on language about an easing bias.

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